Glanbia deal: pros and cons of Thursday's vote
With the countdown underway to Glanbia Co-op’s latest vote for a share spin-out and agri-business purchase, the pros and cons of the proposed deal are again under the spotlight.
From Carlow to Clonmel shareholder meetings have heard their fair share of concerns raised about the low-margin Dairy Ireland division, the dilution of farmers’ power in the boardroom and whether taking a slice of the Brexit-exposed cheddar cheese division really is timely.
Many farmers have been in favour of the cash injection, while dry shareholders have been particularly vocal as they question what is in it for those who’ve retired from the business.
Glanbia chairman Henry Corbally has urged over 7,500 voting co-op shareholders to turn out this Thursday at Punchestown event centre.
The proposal is to create Glanbia Ireland which will combine Glanbia Ingredients Ireland (GII) and Dairy Ireland’s agri-business, with a network of 50 stores, and consumer foods division. Farmers will vote on paying €112m to take a 60pc stake, with the plc owning 40pc.
This would mean cashing in on 3pc of the co-op’s valuable shareholding in the plc.
It is seven years since farmers voted against purchasing 100pc of the businesses, a deal that would have cost them a significant chunk of their plc shareholding.
Now, the parameters have changed as they have to part with only a 3pc slice of their plc shareholding as the shares have soared in value.